Novara Live Labour to Scrap Two Child Benefit Cap in Budget
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Nov 24, 2025 Economist Daniela Gabor, a professor at SOAS, dives into the complexities of bond markets and government fiscal choices, challenging the common narrative that pits the two against each other. She critiques the political use of Modern Monetary Theory while emphasizing the importance of taxation for redistribution and strategic investment. The discussion also covers the potential effects of borrowing on public services like the NHS, exploring when it can lead to long-term economic benefits.
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Budget Mixes Redistribution And Crackdown
- The budget will scrap the two-child benefit cap while promising tougher fraud crackdowns and a mansion tax to placate voters and markets.
- Michael Walker argues scrapping the cap could lift millions out of poverty but may increase harmful surveillance of benefit claimants.
Taxing Property Windfalls Is Fair Game
- Revaluing council tax bands and a mansion tax target wealth gains from housing rather than earnings.
- Ash Sarkar frames taxing windfall property gains as justified envy that should fund public services.
Wealth Flight Reflects Policy Tradeoffs
- Billionaires leaving the UK (e.g., Lakshmi Mittal) highlight tensions between tax policy and attracting talent.
- Peter Kyle accepts some departures are due to tax changes while promoting talent visas and investment to retain entrepreneurs.
